What is
the Skandia Model for Measuring Intellectual Capital?
The Skandia model provides a balanced and holistic picture
of both financial capital and intellectual capital. According to the model,
there are four areas of focus with regard to intellectual capital: customer
capital, human capital, process capital, and renewal and development capital.
Theses areas of focus are used as the basis for assessing the intellectual
capital within a competitive environment.
The model for measuring intellectual capital uses 'the house' as a
metaphor for the organisation. financial capital constitutes the roof of the
house, and reflects the organisation's history and achievements of the past,
which do not necessarily enlighten us in terms of future achievements. The
supporting columns are process capital and market capital, and they are the
areas upon which the present operations of the organisation are based. Renewal
and development capital, which is found in the centre of the house, interacts
with all the different focal points. Human capital, which is also found in the
centre of the house, interacts with all the different focal points. Human
capital is the heart of the organisation, i.e., the capabilities, expertise, and
wisdom of the people. It is the role of the organisation to assist, guide, and
support its people towards realisation of their vision strategic goals.
The organisation can also be described as a tree. The various
means that express the tangible assets-the annual reports, catalogues,
protocols, and others-are compared to the leaves and branches of the tree. The
wise investor who desires the fruit of the tree will examine its roots in order
to learn about its future. The roots of the tree and the foundation of the house
reflect the renewal and development capital of the organisation, which is the
source for growth and affluence.
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